Brazilian Career GOL has secured approval for its May 20th financial restructuring plan after filing for Chapter 11 bankruptcy last year.
The Rio de Janeiro-based airline says it is well on track to emerge from the restructuring process early next month, with approval from the US Bankruptcy Court for the Southern District of New York.
Clearing the final major hurdle of the Chapter 11 bankruptcy process comes after GOL secured $1.9 billion in Exit finance last week, and then won $1.25 billion from Anchor Investors Castlelake and Elliott Investment Management.
The Rio de Janeiro-based carrier has secured $50 million from the ad hoc group's Augusta bondholders, $30 million from the company's public rights offering and $570 million from “other investors.”
The company previously negotiated a concession package totaling $1.1 billion from aircraft lenders “covering all aircraft in GOL's fleet.” The transaction provides support to clear the maintenance backlog and “provide permanent savings on rent and lease termination obligations.”
Meanwhile, the deal with aircraft supplier Boeing offers more than $260 million in concessions and $700 million in “complete relief,” Gol said.
GOL says it has received support from a Brazilian bank in the form of a restructured debt, generating $340 million in accounts receivable.
The company filed for Chapter 11 bankruptcy protection in January 2024. At the time, GOL cited debt burdens and a maximum delivery delay of 737 as a contribution to financial difficulties.
With the process approaching completion now, GOL Parent Abra Group is expected to pursue the possibility of partnering with Azul to create the largest airline in Brazil.
GOL recently reported a profit of $1.4 billion ($250 million) in the seasonally strong first quarter, but revenue over the period increased by about 20% to $5.6 billion.
